Tuesday, May 19, 2015

You've Got Money!

Imagine that after checking www.SSA.gov to see what you can expect when you retire and estimated what your minimum required distributions from your retirement accounts will be, you’ve discovered that you’re not going to have enough retirement income to cover your living expenses. Youve got money.jpg

Ideally, it would be perfect if the extra money you need would just come to your mailbox each month with the same certainty as your social security or retirement income.

Rental homes are a popular choice for passive income because they are an investment that most people understand based on their experience owning a home. They’re easy to manage and the rents should keep pace with inflation.

Mortgage loans for investors are available to investors with good credit and at least 20% down payments. While 30 year terms are the most common, some investors wanting to have the home paid for by retirement may choose a 15 or 20 year term.

A tried and true strategy is to choose average or slightly below average priced homes in predominantly owner-occupied neighborhoods. This will appeal to more prospective tenants wanting to live in good communities and should provide a higher level of revenue.

When an owner has a good property with a good tenant, the income is as predictable and convenient as going to the mailbox each month. To learn more about rental homes, contact your real estate professional.


Tuesday, May 12, 2015

Live the Dream

Consumers are more easily living the American Dream of owning a home because of the incredibly low mortgage rates. Today, most buyers can get a much lower rate than their parents or grandparents got on their first home. American dream2.png

In a recent housing survey, FNMA released information about consumers' thoughts on the current market. Almost two-thirds would rather buy than rent and believe that now is a good time to buy. Half of the respondents expect rent and home prices will go up.

Top Ten reasons to move the dream to reality:

  1. It’s cheaper than renting in most cases
  2. Avoid rental increases in the future
  3. Equity build-up with amortization of each payment going to principal
  4. A home is a forced savings account
  5. Appreciation increases your equity and your overall investment
  6. Mortgage interest and property tax deductions
  7. Home equity interest deduction
  8. A place you can call your own
  9. A place to share with friends and family
  10. Capital gains exclusion on profit

Buyers need the confidence that they can afford a home and proof for the sellers when they’re ready to submit a contract. If a buyer has steady reliable income, a good record of paying their bills, money saved for a down payment and are prepared to pay the mortgage each month, the next step is to get pre-approved by a trusted mortgage professional.

Take a look at the Rent vs. Own to see what the real cost of owning a home for your price range.

 


Tuesday, May 5, 2015

Amortization

The word describes the process of accounting that will repay a loan over time. Residential buyers will most commonly be required to have an amortized mortgage.

When amortizing a fixed rate mortgage, the payment remains constant for the entire term but the allocation of what goes to principal and interest changes with each payment that is made. Since an amount of each payment retires the principal, the interest due on the next payment is calculated on the unpaid balance after the previous payment was made. amortization schedule.png

This means that an increasing amount is applied to principal on each payment while the amount owed in interest decreases. If normal payments are made each time, on time, the loan will be completed paid off at the end of the term.

You can see in the example of a mortgage of $200,000 at 3.25% for 30 years that it has a fixed principal and interest payment of $870.41. There is $541.67 due in interest with the first payment and the remainder is applied to principal leaving an unpaid balance of $199,671.25. Since the interest due in the second payment is based on a lower principal, a little more is applied to principal.

If you’d like to have an amortization schedule for a mortgage, click here and enter the information about the loan.

amortization.png


Tuesday, April 28, 2015

Pay More or Less

Paying more for your house payment does not make your home more valuable. It does mean that the mortgage rate may be higher than it has to be. more or less.png

Even though fixed rates may never again be as low as they are currently, an adjustable rate mortgage may provide the lowest cost of ownership depending on how long a borrower plans to own a home. There are different types of ARMs but the one in this example is a 30 year mortgage with the rate fixed for five years and can adjust every one year after that based on independent indexes.

Another feature of a FHA ARM is the maximum rate change in one period is 1% and the maximum lifetime cap is 5% over the initial rate.

In the example below, the payment on the adjustable is $153.48 lower for the first five years or 60 payments. Another interesting thing is that lower interest rate loans amortize faster than higher interest rate loans. In this example, the ARM has a lower unpaid balance at the end of the first five years by $4,239.

The total savings on the ARM at the end of the first period is $13,477. If a borrower felt confident they would sell the home prior to the breakeven point of 8.5 years, the ARM would produce a lower cost of housing even if the mortgage rate escalated the maximum at each adjustment period.

To help determine whether you pay more or less, consult with a trusted mortgage professional and your real estate agent to learn the advantages and disadvantages of different programs. To try your own comparison, check today’s rates at the Freddie Mac Mortgage Rate Survey and plug your numbers into an Equity Accelerator

ARM comparison2.png.jpg

Monday, April 27, 2015

Events for the first weekend in May

13th Annual Waikiki Spam Jam

Saturday, May 2, 2015 4:00 pm 
10:00 pm


It's the annual Waikiki Spam® Jam, a cultural tradition in Hawaii, and rated as one of the top annual food festivals in Hawaii. The Waikiki Spam® Jam, which starts at 4:00 p.m. and ends at 10:00 p.m., is one of the most popular festivals in Hawaii because of its great food and entertainment in a family-friendly atmosphere. Local residents and visitors alike have made this an annual tradition. 
Location:
Kalakaua Ave
HonoluluHI 96815

Cost:
Free
Donations of Spam for the Hawaii Food Bank are being collected during the event. Please bring down a can of Spam® to donate.


Symphony in the Park

Saturday, May 2, 2015 5:00 pm


FREE concert in Kailua District Park on Saturday, May 2, conducted by Dr. Jeffrey Boeckman of the University of Hawai'i at Mānoa and emceed by Howard Dicus of Hawaii News Now.

This family-friendly program will feature popular classics including Finlandia and Shostakovich's Festive Overture as well as selections from West Side Story and a Star Wars Medley.
A special prelude concert featuring Le Jardin Academy's Jazz Ensemble under the direction of Martin Smith featuring vocalist Alyssa Manley will begin at 4:15 p.m.

Location:
Kailua District Park
21 South Kainalu Dr
Kailua, HI 96734
(808) 266-7652

Cost:
Free

The 14th Annual Jamba Banana Man 5K Chase

Saturday, May 2, 2015 7:00 am


The 14th Annual Jamba Banana Man 5K Chase gives participants a chance to chase life size bananas around the beautiful Ala Moana Beach Park and Magic Island (5k = 3.1 miles). Hawaii's wackiest race seeks 1,200 runners for the 5K and 200 kids (ages 13 and under) for the Keiki Fun Run around Magic Island. 


Event Day Schedule:
5:30am - Same day registration
6:30 - Registration closes
7:00 - Race begins!
7:00 - Keiki activities and Hawaii Speed & Quickness drills begin
7:45 - Keiki Fun Run starts
8:15 - Awards and prizes

Location:
Magic Island
1401 Ala Moana Blvd
Honolulu, HI 96814
(808) 592-2288

Cost:
$20



Tuesday, April 21, 2015

Basic Legal Documents

iStock_000012034746_250.jpgMany times, young adults feel “bullet-proof” and don’t consider the urgency to get involved or spend the money to take care of certain legal aspects of their lives because they think they’re going to live forever.  Since no one is guaranteed longevity of life, if you want to be in control of who gets what and who is in charge now based on an untimely incapacitation or death, it is important to investigate these basic legal documents.

Will – This is a legal instrument that specifies your desires to care for your minor children and to distribute your personal property after you die and who will manage the process.  Anyone who has property and minor children needs a will.

Living Will – This legal instrument specifies your intentions regarding end of life decisions or to designate an individual to make those decisions on your behalf.  Many times, a person who had been diagnosed with a terminal condition or who is facing a serious surgery or hospitalization might feel a sense of urgency to have this document.

Power of attorney – This document allows you to appoint someone you trust, not necessarily an attorney, to handle important legal and financial matters for you if you are unable to make decisions for yourself.  The time limit can be for a specified period of time or indefinitely.

Trust – This arrangement involves an entity called a Trustee who takes control and manages property for someone else’s benefit called a beneficiary.  When property is placed in a trust, the trust becomes the owner of the property.  There are different types of trusts and a qualified advisor can explain and recommend which type would be best suited for your situation.

HIPPA Release Form – The Health Insurance Portability and Accountability Act, known as HIPPA, was created by Congress to protect the privacy of a person’s health information.  Health care providers are prohibited from discussing any aspect of your medical information with anyone who is not directly involved in your care.  To allow friends or family who do not have legal responsibility for you to have access to this information, this release form is necessary.

Most of the issues affecting these types of documents are determined by state law.  Since they are legal documents, it is recommended that you seek sound financial and legal advice.


Monday, April 20, 2015

Events for April 24-25 Eats, Expos and Laughs

Eat The Street: Philippines

Friday, April 24, 2015 
4:00 pm 9:00 pm





Come enjoy Hawaii's Food Truck and Street Food Rally featuring treats from the Philippines.  Don't miss happy hour and entertainment from 4-6pm

Location:
Kaka'ako Makai Gateway Park
677 Ala Moana Blvd
Honolulu, HI 96813
(808) 587-2870


Hawaii World Class Wedding Expo XXXIV

Friday, April 24, 2015 6:00 pm - 10:00 pm
Saturday, April 25, 2015 11:00 am - 5:00 pm


Everything a bride would need to plan her perfect wedding.
Photographers, bridal gowns, tuxedos, hotels and resorts, floral designers, cakes, caterers, hair and make up, beauty, weight loss, skin care products, videographers, centerpieces, specialty services, venues, limousines, travel agents, invitations, diy crafts, bridal accessories and gifts, and more!

Location:
Hawaii Convention Center
1801 Kalakaua Ave
Honolulu, HI 96815
(808) 943-3500

Cost:
TICKETS $9.00 AT-THE-DOOR
For each pair of tickets (2) you order, at $18.00, you will be awarded 100 HawaiianMiles for each pair of pre orderedtickets. 


Improv Brew Haha

Saturday, April 25, 2015 
8:00 pm 10:30 pm
Doors at 7:30pm, show at 8pm



Get ready to laugh with Think Fast and friends! Chinatown's biggest improv team Think Fast will be hosting and performing with teams made up of improv students and improvisers from all over the Hawaii improv community.

More Info:

Location:
Ong King Art Center
184 N King St
Honolulu, HI 96806
(724) 816-6585
Street parking and at Chinatown Municipal Parking lots for $3

Cost:
Cash donation bar